The Ohio General Assembly on Wednesday approved legislation providing $875 million in long-overdue Quality Incentive Payment (QIP) funding to Ohio nursing facilities, bringing to a close a nearly three-year effort led by LeadingAge Ohio, the Ohio Health Care Association, and the Academy for Senior Health Sciences.
The funding was included in House Bill 479, a bill that was amended to become a budget correction measure that passed the Senate unanimously and cleared the House on an 89-5 concurrence vote. The bill now heads to Governor Mike DeWine for his signature.
The payments stem from the Ohio Supreme Court's September 2025 ruling in favor of nursing facility providers after LeadingAge Ohio and its partners challenged the Ohio Department of Medicaid's implementation of the state's nursing facility quality incentive program. The Court found that providers had been underpaid for meeting quality benchmarks established by the General Assembly.
The legislation appropriates $875 million to satisfy the court-ordered payments, including approximately $310 million in state funds and $565 million in federal matching dollars.
Speaking on the House floor, Representative Jean Schmidt (R-Loveland) called the payments "long overdue" and noted that at least one nursing facility in her district closed while awaiting resolution of the dispute.
In a statement following passage, LeadingAge Ohio President and CEO Susan Wallace said:
"Today we are one step closer to resolving the work we began nearly three years ago. We look forward to the governor's signature and partnership with the Ohio Department of Medicaid to distribute payments. We thank the House and Senate who have pushed this across the finish line ahead of summer recess."
While legislative approval marks a significant milestone, implementation details remain important. LeadingAge Ohio will continue working with the Ohio Department of Medicaid as payment distribution plans are finalized, including outstanding questions involving certain change-of-ownership and change-of-provider circumstances.
For nursing facility providers, passage of HB 479 represents the culmination of years of advocacy and litigation to ensure that providers receive the quality incentive payments authorized by law and earned through their commitment to resident care.
More information regarding payment timelines and implementation details will be shared with members as it becomes available.
Members are encouraged to attend this Monday’s Advocacy in Action call, where the LeadingAge Ohio policy team will provide further details on the amendment language, payment timelines, and implementation details.